Apprenticeships

Employers may be eligible for a tax credit, per eligible apprentice, of up to $5,000 to a maximum of $15,000 over the first 36 months of the apprenticeship.

Eligibility:  To qualify, apprentices must be in their first 36 months of apprenticeship training in a qualified skilled trade on or after May 19, 2004 and they have commenced employment before January 1, 2008.

Eligible Expenditures:  Salaries and wages that were paid after May 18, 2004 and before January 1, 2011 to an eligible apprentice are eligible expenditures.

Amount of Credit:  Credits vary between 25 to 30%.  Corporations can receive 30% for wages and salaries that are under $400,000 in the prior year and they can receive 25% for wages and salaries that are over $600,000.  Credits are pro-rated for salary and wage values that fall between $400,000 and $600,000.

Qualified Skilled Trades:  Trades include designated construction, industrial and motive power trades, as well as the service trades that are eligible under the present apprenticeship section of the Co-Operative Education Tax Credit.

Co-operatives

Eligibility:  To qualify, corporations must hire a co-operative education student (co-op) after December 31, 2004.

Eligible Expenditures:  Salaries and wages, which include taxable benefits, and are paid by the corporation during the work placement are eligible expenditures.

Amount of Credit:  Corporations can receive 15% for wages and salaries that are under $400,000 in the prior year and they can receive 10% for wages and salaries that are over $600,000.  The credit is pro-rated for salary and wage values that fall between $400,000 and $600,000.

Qualified Skilled Trades:  A co-op work placement that commenced after July 31, 1996 or a leading-edge technology work placement that commenced after December 31, 1997 would qualify.  The co-op work placement must be 10 weeks in duration.  The maximum employment period is four months.